Spy’s streak of quarterly sales increases ended in the second quarter, however gross margin improved.
Spy sales fell 18% to $8.2 million for the quarter ended June 30. Prior to the second quarter, Spy’s sales had grown year-over-year for 12 consecutive quarters.
CEO Michael Marckx said in a statement that the sales decline came from a soft consumer market, key retailers holding lower levels of inventory and fewer closeouts of sunglasses.
Sales trends improved in June, Michael said.
Gross margins grew to 56% vs. 53% during the same period last year. Gross margins were the highest in four years, and he cited a strong product development team and cost reduction efforts as the reason.
Spy’s net loss in the quarter grew to $742,000 vs. $574,000.
Looking forward, Spy had strong preorders for goggles and will focus on driving overall sales, improving product margins and managing costs, the company said.
Editor’s note: SES member can read our interview from earlier this year with CEO Michael Marckx about the changes he has made at Spy that have led to improvements at the brand.
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